Primary law, Tamil Nadu land law
The Industrial Reconstruction Bank (Transfer of Undertakings and Repeal) Act, 1997
The Industrial Reconstruction Bank (Transfer of Undertakings and Repeal) Act, 1997, Act No. 7 of 1997, was enacted by Parliament on 19 March 1997 and is deemed to have come into force on 24 January 1997. It transferred the entire undertaking of the Industrial Reconstruction Bank of India, including its land, buildings, leases, loans, contracts and liabilities, to the Industrial Investment Bank of India Limited, and repealed the Industrial Reconstruction Bank of India Act, 1984. The Act was amended by the Banking Laws (Amendment) Act, 2012, as shown in the text updated to 1 June 2026.
What the Act does
The Industrial Reconstruction Bank (Transfer of Undertakings and Repeal) Act, 1997, Act No. 7 of 1997, was enacted by Parliament on 19 March 1997. It is deemed to have come into force on 24 January 1997. The transfer to the Industrial Investment Bank of India Limited took effect on 27 March 1997, following a Central Government notification dated 25 March 1997.
The Act transferred and vested the undertaking of the Industrial Reconstruction Bank of India in the Industrial Investment Bank of India Limited. It also repealed the Industrial Reconstruction Bank of India Act, 1984, while preserving specified accounting, audit and industrial concern arrangements.
Property and contractual effects
The Industrial Reconstruction Bank (Transfer of Undertakings and Repeal) Act, 1997 covers all assets, rights and liabilities connected with the transferred undertaking. These include:
- Land, buildings, vehicles and other movable or immovable property.
- Tenancies, leases, loans, advances, guarantees and book debts.
- Investments, shares, bonds, debentures, deposits and funds.
- Contracts, deeds, powers of attorney, working arrangements and records.
- Borrowings, liabilities and obligations within or outside India.
Existing contracts and instruments ceased to operate against the Industrial Reconstruction Bank of India and instead became enforceable by or against the Industrial Investment Bank of India Limited. Pending proceedings and causes of action connected with the undertaking could likewise continue by or against the company.
Who may be affected
The Industrial Reconstruction Bank (Transfer of Undertakings and Repeal) Act, 1997 may matter to a person whose property, lease, tenancy, loan, guarantee, contract or legal proceeding involved the Industrial Reconstruction Bank of India before the transfer date. Such interests and obligations moved to the Industrial Investment Bank of India Limited without requiring the original documents to name the company.
The Act does not set general rules for buying, selling or registering land in Tamil Nadu. Its property relevance is limited to assets, interests and transactions connected with the transferred bank undertaking.
Other key provisions
- Guarantees given for loans, lease finance or other assistance continued in relation to the company.
- Fiscal concessions, licences, benefits, privileges and exemptions granted to the bank were treated as granted to the company.
- Employees connected with the undertaking transferred on the same service terms, subject to their option not to continue.
- References to the Industrial Reconstruction Bank of India in Acts, rules and regulations were replaced with references to the Industrial Investment Bank of India Limited.
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Common questions
Does this Act transfer land owned by the Industrial Reconstruction Bank of India?
Yes. Land, buildings and other movable and immovable property connected with the bank's undertaking vested in the Industrial Investment Bank of India Limited.
What happened to an existing lease or tenancy involving the bank?
Tenancies and leases formed part of the transferred undertaking. Existing contracts and instruments became enforceable by or against the Industrial Investment Bank of India Limited instead of the Industrial Reconstruction Bank of India.
Did guarantees connected with loans or lease finance end after the transfer?
No. A guarantee given for or in favour of the Industrial Reconstruction Bank of India concerning a loan, lease finance or other assistance continued to operate in relation to the Industrial Investment Bank of India Limited.
Does this Act change general land registration rules in Tamil Nadu?
The Act does not state general rules for land registration. It deals with transferring the Industrial Reconstruction Bank of India's undertaking, including its land and property interests, to the Industrial Investment Bank of India Limited.
